All is normal, says EV maker NIO amid questions over subsidiary

Source:Global Times Published: 2019/11/13 21:08:41

A Nio vehicle is displayed at the Shanghai Auto Show in April. Photo: Zhang Hongpei/GT

Chinese electric vehicle (EV) manufacturer NIO, also known as China's Tesla, said on Wednesday that it is currently operating normally, after one of its subsidiary companies was listed as having abnormal operations by Beijing regulators.

Because the registered office and operating venue were not contactable, the Beijing-based subsidiary of NIO was put in the abnormal operation list on November 1, according to the website of China's National Enterprise Credit Information Publicity System.

The subsidiary company was set up in July and has not been put into operation yet, said a statement sent to the Global Times by NIO on Wednesday.

"NIO is operating normally," said the statement, without disclosing whether the company has been in contact with the related regulators yet.

According to Beijing-based Chinese enterprise information provider Tianyancha, the affiliate's legal representative is Li Bin, who is the founder and CEO of NIO.

As a leading Chinese EV maker, the company's development has drawn attention, especially against the backdrop of a weak EV market in China in recent months and more fierce competition from both domestic and overseas EV brands such as Tesla, which recently obtained its mass production license from China's Ministry of Industry and Information Technology.

NIO lost 17.2 billion yuan ($2.45 billion) from 2016 to 2018, domestic news site reported on Wednesday, citing data from NIO's financial reports.

The company went public in New York last year. According to its second quarter financial statement, its revenue reached 1.5 billion yuan, down 7.5 percent from the first quarter. 


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